Gold Price Analysis: XAU/USD bulls catch a breather below $1,900
|- Gold eases from a four-day high of $1,883.08 flashed the previous day.
- Markets await fresh clues to extend the latest risk-on sentiment.
- Vaccine hopes, expectations of further stimulus keep the buyers positive but COVID-19 resurgence probes the bulls.
- Cautious sentiment ahead of the first US Presidential Election debate, Brexit talks also challenge the bullion optimists.
Gold traders are waiting for extra directions to extend the biggest recovery move in a month. In doing so, the yellow metal fades the previous day’s upside momentum near $1,880 amid the pre-Tokyo open Asian trading on Tuesday.
Are bears sneaking in?
Given the commodity buyers’ pause, coupled with a lack of major data/event ahead of the key US Presidential Election debate, concerns over the short-term strength of the safe-haven metal can’t be ruled out.
Also adding questions to gold’s latest pullback could be the recent announcements by US House Speaker Nancy Pelosi who said, "We have been able to make critical additions and reduce the cost of the bill by shortening the time covered for now." The news inflates the hope of the American stimulus and can reduce the rush to risk-safety for now.
Additionally, the European Central Bank (ECB) President Christine Lagarde also showed readiness to announce further measures to keep the bloc on the recovery mode amid recent challenges.
Meanwhile, UK PM Johnson is up for announcing further helps to combat the fears of economic slowdown as the coronavirus (COVID-19) resurgence and Brexit uncertainty attack the previous optimism.
It’s worth mentioning that the rising numbers of the pandemic are pushing the UK and Europe towards strict activity restrictions while two cities of Canada, namely the Quebec City and Montreal, will be under red alert from October 01.
Amid all these plays, S&P 500 Futures gain 0.20% to 3,353 after Wall Street marked a notable bounce.
Looking forward, a light calendar in Asia may keep gold traders directed towards risk catalysts for fresh impetus. In doing so, news concerning the US aid package, virus and vaccine will join the Brexit and American Presidential Election could entertain the momentum traders.
Technical analysis
A clear break of the September 21 low of $1,882.30 becomes necessary for the bulls to attack the $1900 threshold. Though, August month’s low near $1,903 will precede 50-day EMA figures surrounding $1,908/09 to probe the gold buyers afterward. Meanwhile, sellers are less likely to enter unless the bullion prices drop below $1,848.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.